Purchasing office supplies used to be a no-brainer: Once someone
started in on the last pack of pens or legal pads, you knew it was
time to hop in your car and head to the nearest office-supply store
to replenish your dwindling stock. However, now that the industry
has grown to include not only traditional office-supply stores, but
also their online counterparts, choosing the best place to buy
office supplies is no longer a black-and-white decision.

This month, we take a closer look at office-supply giants
Staples, OfficeMax and Office Depot to get a handle on your
purchasing options in this increasingly Internet-oriented business
world. One thing is clear: The great divide between the Internet
and real-world versions of these stores is narrowing.

"We're going for a seamless integration of our retail
stores and our online site, meaning that someone could walk in our
stores, go to an electronic online station and order products or
business services from Office-Max.com," says Steve Baisden of
OfficeMax. "If they can't find that favorite red pen in
the store, for example, they can order it online in the store and
have it delivered to their business the next day." OfficeMax
is not the only retailer heading in this direction. "The
Internet is going to be a tool for our customers to run their
business online, not just to buy products. So the integration of
the services in addition to the products we sell is a great
focus," says Monica Luechtefeld, executive vice president of
e-commerce at Office Depot.

At press time, however, Office Depot announced it would be
closing 67 stores nationwide, along with three in Canada.
"They're stores that are by and large not in great
locations," explains Luechtefeld. "They [sell to]
customers whom we're going to [service] through our catalog,
mail order and sales force. We're not leaving [those]
customers-we just won't be servicing them in a retail
store."

Online Realities

Focusing on the Internet is the right move, judging by the
popularity of online ordering among entrepreneurs. In fact, of all
the people I talked with, not a single one purchases their supplies
primarily by dropping by the store-not even one business owner
whose office is located across the street from a Staples.

What's the selling point? In a word, convenience. You
don't have to leave the office, you can consult a running log
of past purchases when it's time to re-order, and you're
spared the burden of carrying a load of supplies back to the
office. Many feel buying online gives them more control over their
expenses because they can make a set list of approved purchases
employees can make.

And delivery is a real cinch. Staples.com, OfficeMax.com and Office Depot On-line all offer
free shipping for orders totaling more than $50. And actual prices
for products are pretty much the same regardless of where or how
you shop (see "Shop
Around"). Online ordering does have its downsides,
however. Budget-conscious penny pinchers will miss out on sales and
promotions offered in the physical stores and, consequently,
sometimes end up paying more online. (A Web site like
www.dealcatcher.com, which lists available coupons for a variety of
retail sites, can help, though.) Also, if you're particular to
certain brands, the selection you find online may be different from
what you're used to in the physical store.

Ready to buy online? Then there's only one remaining
question to answer: Who do you go with? A few words of
caution-don't take this decision lightly. It's not just
another expense; it's a long-term relationship. "A tip I
would give to other entrepreneurs is to allow much more time to get
set up than you think you're going to need, and definitely do
due diligence upfront before selecting your supplier-you're
probably going to end up staying with them for a while because
it's just too much of a hassle to change," warns Rosemary
O'Neill, 36, co-founder of Infopop Corp. in Seattle.
O'Neill's company, which has annual sales of about $2
million and spends $300 to $400 per month on office supplies, has
come to rely on OfficeMax.com for the majority of its office-supply
needs.

While the ease of ordering and simply waiting for your delivery
is a definite draw for online shopping, some aspects of the
in-store buying experience simply can't be replaced. For
instance, the personal customer service found in a physical store
doesn't really translate well to the online world, where
you're dealing with computers instead of people. "In
stores we're constantly striving to beat customers'
expectations in terms of customer service," says Baisden of
OfficeMax. "I think we're really trying to add value in
the training we give our associates and how they interact with
customers."

For instance, if you're still fishing around for products
that will address your company's needs, then going to the
physical store, where you can consult with salespeople, is still
your best bet. If you're looking for office furniture, for
example, you might feel more comfortable going to the stores to
look at and touch the actual products. And some entrepreneurs are
accustomed to using special services the stores offer, such as copy
centers that let you whip up everything from business cards to
marketing materials.

Analyst Buzz

Of the three superstores, Staples.com seems to be beating the
competition from an analyst's perspective. "Office Depot
and OfficeMax have online sites, but it seems to me that they
haven't really created a services platform for their
small-business customer," says analyst Kneko Burney, director
of eBusiness Infrastructure & Services at Cahners In-Stat
Group. "Staples has just always been really innovative, and
they have a phenomenal distribution network."

It turns out that the majority of business owners consider
reliability and service rather than price to be their main
priorities in purchasing office supplies, and Staples.com seems to
have beaten the competition on those levels. "Their customer
support is outstanding. The e-mail responses have been accurate and
blazingly fast," says Ramon Ray, an analyst at Smallbiztechnology.com, a
New York City-based company that provides strategic technology
solutions to small businesses.

With this shift from in-store to online purchasing, companies
have been striving to add value for entrepreneurs via additional
online services, such as payroll and recruiting. "You'll
see that [Office Depot's] goal is not just to aggregate
hundreds of services," says Luechtefeld. "[Instead,] what
businesses want us to be is that trusted partner in helping them
find the best quality."

And it's quality of products and services that office-supply
stores hope to provide to entrepreneurs. The weeding-out of
lower-quality items also seems to be one of Staples' strengths.
"They go through a significant due diligence process
that's really beneficial for customers," according to
Burney.

The bottom line: You don't want to get stuck taking mental
notes during an important meeting because your office-supply store
of choice is late on yet another delivery. Just because a store
carries your favorite pen or notepad doesn't mean it's your
best choice. Look at the big picture, and remember that this is a
long-term decision.

Shop Around

Here's a snapshot of a price comparison that was conducted
in January among Office Depot, OfficeMax and Staples, along with
their online counterparts. Note that some online prices reflect
those found for a specific ZIP code, and prices may vary according
to your geographic location. The in-store pricing seen below is
based on the Boston area.